: Dr. Pepper Snapple Group, Inc.: Energy Beverages
Assignment 3.4 – Case Study: Dr. Pepper Snapple Group, Inc.: Energy Beverages
1. How would you characterize the energy beverage category and competitors in late 2007? A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still expanding and coming into its own with such a variety in the products it offered to the consumer. A disadvantage that can be listed to discuss is the advertisement industry. This seems to be causing a great disadvantage to many of these companies looking to break into the energy drink market further. Red Bull is the only company who has television advertisement, which gives it the competitive advantage over all the others. So you can also characterize the energy beverage market as behind in times compared to these companies other beverage products. Many of these companies outside of Red Bull were still trying to discover what can set them apart from the competition and let them get a competitive advantage in price. There are many different ways each company can make a profit with the off-premises and on premises while also considering the consumer age groups you could market towards. It is hard for each to make a profit like Red Bull, when the each is marketing to the identical group and market. Something to get the competitors out of the characterization that they are all identical would be to diversify your product and find something that allows you to differentiate it from the other energy beverages.
2. Does your
1. How would you characterize the energy beverage category and competitors in late 2007? A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still expanding and coming into its own with such a variety in the products it offered to the consumer. A disadvantage that can be listed to discuss is the advertisement industry. This seems to be causing a great disadvantage to many of these companies looking to break into the energy drink market further. Red Bull is the only company who has television advertisement, which gives it the competitive advantage over all the others. So you can also characterize the energy beverage market as behind in times compared to these companies other beverage products. Many of these companies outside of Red Bull were still trying to discover what can set them apart from the competition and let them get a competitive advantage in price. There are many different ways each company can make a profit with the off-premises and on premises while also considering the consumer age groups you could market towards. It is hard for each to make a profit like Red Bull, when the each is marketing to the identical group and market. Something to get the competitors out of the characterization that they are all identical would be to diversify your product and find something that allows you to differentiate it from the other energy beverages.
2. Does your
References: Kerin, Roger A. & Peterson, Robert A. (2010). Strategic Marketing Problems Cases and Comments (12th ed.). New Jersey: Pearson Prentice Hall. 80-92.